Rise in house repossessions likely

A rise in the number of house repossessions is likely, in the coming quarters, as a means of stemming the strategic non-payment of outstanding home loans, Davy Stockbrokers has warned.

Yesterday’s second quarter mortgage arrears data, from the Central Bank, showed that repossessions between the beginning of April and the end of June remained low, with just 225 cases reported by lenders. In total, 2,228 cases have been reported in the past four years, even though one-third of all mortgage borrowers fall into the strategic non-payment bracket.

Imminent legislation dealing with the 2011 Justice Dunne/High Court ruling on lenders’ rights regarding repossessions will mean that repossessions “will have to rise — particularly in the buy-to-let sector — to provide a credible threat to strategic non-payment of arrears,” according to David McNamara of Davy Stockbrokers.